Commercial property spaces in Berkshire are among the most expensive anywhere in the country, according to a new study.
Business comparison experts Bionic analysed retail, hospitality and office spaces using data from property listing site Rightmove.
Prices were collected per property, and monthly mortgage repayment estimates were based on 75% interest-only loans, aligned with the new 5.25% interest rates, and spread over 15 year repayment periods.
The study has revealed the average cost of buying a commercial property in Berkshire is £569,234 which is nearly equal to the UK average of £560,913.
The average monthly mortgage repayments for commercial property in Berkshire based on current interest rates, is approximately £1,850. Just 12 months ago, when the interest rate sat at around 2.5%, the monthly repayment would have been about £889.
The average monthly rental price for commercial property in the area is £7,618, which is three times higher than the South East average and more than four times higher than the average monthly mortgage repayment for the county, suggesting purchasing property could be the most cost effective option for businesses planning to stay in Berkshire long term.
Berkshire was revealed as the second most expensive region to rent commercial property overall, with only London having higher prices. Average monthly rental payments for office space in Berkshire are six higher than average monthly mortgage repayments. Only London had higher rental prices for offices than Berkshire.
The region is the most expensive in the UK for purchasing hospitality space with an average purchase price of £3,776,362 – a figure inflated by a number of multi-million hotels for sale.
Les Roberts, business comparison expert at Bionic, has provided advice to small businesses in in that might have hesitations about purchasing a commercial space in Berkshire due to the alarming spike in prices:
He said: “Berkshire hospitality space prices indicate that commercial mortgage rates are continuing to rise. However, being tied to a lease is especially risky during economically volatile conditions as many leases increase in line with inflation, which currently sits around 8.7%.
“Not only does buying give you full control over the property, but it means costs can be fixed, removing the risk of payments increasing.
“It’s worth noting that this data looks at mortgage repayments based on the average 15-year repayment periods, but smaller businesses could settle for longer repayment periods to lower monthly costs.”
He added that a survey by Microsoft discovered that 80% of business leaders thought working remotely damaged their employees’ productivity and standard of work.
“Investing in an office space – if suitable for your business, and adopting either full-time or hybrid working conditions – could boost employee productivity and your profits too,” he concluded.
